GERMANY has become a mediator between France and eurosceptic countries as relations between the two “engines of Europe” have grown frosty.

German MEP Sven Giegold has revealed French President Emmanuel Macron is developing a “deep-seated frustration” over his ideas for Europe being shot down by Germany. Mr Macron was said to be angry after the last Ecofon meeting last month when Olaf Scholz, the federal minister of Germany for finance slowed down the European Commission’s plans for digital tax to stop big online corporations avoiding paying tax, which was backed by France.

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Mr Giegold described the relationship between the German and French governments as “definitely cold”.

He said to Deutschland Funk: “The Franco-German partnership has always understood itself as the engine of Europe.

“Not that we can decide everything, that has never worked. But you can jointly discuss ideas with partners and then represent then together.

“And instead, we are currently seeing a situation where France is making more and more suggestions, and sensible proposals for the future of Europe, such as the joint digital tax or tax transparency for large companies, joint investments in the future, only to then get sceptical responses from Germany and answers are no longer on the level of similar visions for the future of Europe.”

Europe CRISIS: The relationship between France and Germany is said to have cooled (Image: GETTY)

Mr Giegold added France has been left feeling like it is losing its partner in Germany.

He said: “France would have wished for a comprehensive digital tax to be put in place, not to wait years to come to terms with Mr Trump in the OECD, which we already know is not going to work at the moment, unfortunately, and we therefore need a European solution.

“And we will now get it in a different shape. More and more states are creating national digital taxes. They will fragment the digital single market because they are all a little different.

“This gives European digital companies great difficulties if they want to operate across borders. Everywhere different tax rules. And all of this has failed because Germany - and not just the Christian Democrats, and the Social Democrats - has thwarted this European digital tax proposed by the Commission, which France wanted, which many other European states wanted.”

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Europe CRISIS: Macron was said to be angry over Germany's hesitation to back the digital tax plans (Image: GETTY)

Europe CRISIS: Germany and France were previously described as the “engines of Europe” (Image: GETTY)

Mr Giegold denied the Federal Government does not just represent national interests and that hesitation over taxing high corporations to stop tax avoidance was due to fear of angering US President Donald Trump.

He said: “There is no national interest, because even in Germany, the unequal competition between hotels and leases of Airbnb, Amazon versus local trade, is just as unfair in Germany as anywhere else in the world.

“And therefore, just taxation is absolutely in the national interest. No, they were obviously afraid to further anger Mr Trump, though it is obvious that he is a US President who responds only to strength and not to cowardice and weakness.

“For a second reason, however, I find that equally fatal, because we need these tax revenues to be able to make meaningful investments. Because we see, we have a cooling economy and a heated climate. And we would actually have to react to this with an investment offensive in Europe.

“Now the economy is down and in this situation, it has to be about raising investment. And for that, we need this revenue to drive sustainable investment to a great extent. Unfortunately, Mr Scholz is indirectly also an investment blocker.”